1.1.2 Market Research Flashcards
What is product orientation
When making a product:
Focus on quality, design or performance
What consumers actually want
New innovative products to persuade poeple to buy them
What is market orientation
Focuses on selling products to match customer preferences
More modern and successful approach
Low-risk strategy
Based on consumer feedback
What makes market research effective
Focusing on consumers’ needs and wants
Anticipate the future needs to be a step ahead of the market
Predict how much demand there is
Need to make enough profit and charge a price consumers are willing to pay
Aspects of a business environment (think SLEPT)
Social
Legal
Economic
Political
Technological
What is quantitative market research
Produces numerical statistics
EG: Questionnaires
Closed questions
Fixed, pre determined answers
What is qualitative market research
Based on opinions of consumers
Open questions
Answers aren’t restricted
Primary research
Collected first hand
Data is specific for its purpose
Exclusive so competitors cannot benefit from the research
Secondary research
Data from reliable sources
Easier, faster and cheaper to get hold of
It may have errors or be out of data
Why do researchers need a representative sample?
Samples are used instead of the whole market
Needs to represent the market= with more accurate results
If the money available is limited, the risk of the data increases
Avoiding bias
Increasing the accuracy= avoids bias
Shouldn’t ask leading questions
Can have interviewer bias as the interviewers bias can influence opinions
How does technology support market research?
Using ICT
Makes research easier, cheaper and quicker
Easier to reach a wider audience/sample
Eg; Websites, social networking and databases
How can a market be segmented?
-Demographic segments
-Geographic segments
-Income segments
-Behavioural segments
